Ride-hailing platform Ola has raised USD 300 million from South Korean automotive manufacturers Hyundai and Kia to double down on its electric vehicle play.
The agreement will see the three companies extensively collaborate on developing unique fleet and mobility solutions; building India-specific electric vehicles and infrastructure; as well as nurturing best in class opportunities and offerings for aspiring driver partners with customised vehicles, said Ola's statement.
Three weeks back, Ola Electric Mobility received USD 56 million from existing investors Tiger Global and Matrix India.
“We’re very excited about our partnership with Hyundai, as Ola progresses to build innovative and cutting-edge mobility solutions for a billion people. Together, we will bring to market a new generation of mobility solutions, as we constantly expand our range of offerings for our consumers,” said Bhavish Aggarwal, CEO of Ola.
According to Ola’s press release, Hyundai Motor Group expects to accelerate its transition from a ‘car manufacturer’ into a ‘Smart Mobility Solutions Provider’, as the partnership’s initiatives will allow it to engage in all aspects across the entire mobility value chain ― including vehicle production, fleet operation and mobility services.
“India is the centerpiece of Hyundai Motor Group’s strategy to gain leadership in the global mobility market and our partnership with Ola will certainly accelerate our efforts to transform into a Smart Mobility Solutions Provider,” said Euisun Chung, executive vice chairman of Hyundai Motor Group.
Ola Cabs operates across 125 plus cities across India, Australia, New Zealand and the UK with over 1.3 million drivers. Founded by Ankit Bhati and Bhavish Aggarwal, Ola has raised a total of USD 3.8 billion in funding over 21 rounds so far. The Bangalore-based firm has acquired 5 firms with the most recent being Ridlr on April 3, 2018.
Ola has been trying to bring in more investors to keep its largest investor SoftBank at bay. The Japanese fund is aiming for a controlling stake in the former. Softbank has also invested in Ola’s major rival Uber and had offered to invest another USD 1 billion in Ola last December.